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Buckreef gold project, Tanzania

1st March 2019

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Buckreef gold project.

Location
The project is located in the Geita district, in the Lake Victoria greenstone belt, in central Tanzania.

Project Owner/s
Tanzanian Royalty Exploration Corporation.

Project Description
The project has proven and probable reserves of 19-million tonnes grading  1.54 g/t of gold.

A prefeasibility study (PFS) has determined that the mineral reserves at the Buckreef project can support a 1.5-million-tonne-a-year mine for 16 years.

The ore material will be mined from the four openpits and then sent for processing at a plant l at Buckreef, which is designed to achieve gold recovery of 92.3%, and 85% for the oxides and sulphides material over the life of the project.

Over the estimated life of mine, about 822 000 oz of gold are expected to be produced.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax net present value, at a 5% discount rate, of $130.96-million and an internal rate of return (IRR) of 74%, with a payback of four years.

Capital Expenditure
The project’s estimated initial capital outlay for the earthmoving equipment, processing plant and related infrastructure will be $76.5-million, which includes a 15% contingency.

Planned Start /End Date
Not stated.

Latest Developments
Tanzanian Royalty Exploration Corporation announced in February that contractors Coreworthy and Stamico were on site to complete Phase 1 of the company’s planned three-phase drilling programme. This will not only upgrade inferred resources into higher categories but also further define the prospects at depth.

The total metres to be drilled in all phases is expected to amount to about 30 000.

Key Contracts and Suppliers
Virimai Projects (PFS) and Coreworthy and Stamico (drilling programme).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Tanzanian Royalty Exploration Corporation, email investors@tanzanianroyalty.com.

Edited by Creamer Media Reporter

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